EpiWorks to be merged with II-VI (Nasdaq: IIVI)

EpiWorks, a leading compound semiconductor wafer company has entered into a definitive agreement to merge with II-VI Incorporated. II-VI (Nasdaq: IIVI) is a global leader focused on providing engineered materials, including ZnSe, ZnS and SiC, while EpiWorks’ specializes in GaAs and InP materials.

“Demand for high-performance semiconductor solutions used in communications, datacenter, cloud and advanced sensor applications continues to increase. EpiWorks has been adding capacity to address market growth and emerging photonics applications, however demand forecasts outpace our ability to add capacity organically. By merging with II-VI, EpiWorks has access to substantial expansion capital, a global footprint and sales support around the world. This will allow us to rapidly deploy our technology to the market and increase our market penetration.” said David Ahmari, who will remain responsible for EpiWorks’ sales, marketing and technology. “Our goal is to provide our customers the most complete range of semiconductor solutions in the industry along with global scale. Teaming with II-VI allows us to go beyond the typical epiwafer foundry model by offering not just scale, but a level of sophistication, flexibility and capability needed in our industry as it is scaling and evolving.”

EpiWorks will continue to operate as a separate, but wholly-owned division of II-VI, named ‘II-VI EpiWorks’, and plans to expand production in Illinois. Access to MOCVD capacity at other II-VI sites also offers EpiWorks customers additional capacity, flexibility and redundancy.

“The combination of II-VI and EpiWorks creates a world class engineered semiconductor materials company. We are excited to join the II-VI family and push the envelope of performance in our industry. We have a creative, multi-year plan for capacity, new capabilities, and novel products that cover a wide range of industries and markets”, said Quesnell Hartmann, CEO of EpiWorks, who will continue on as the General Manager of the EpiWorks business unit. “The vision is to drive the semiconductor technology roadmap by offering a broad-based platform that can serve the diverse needs of today’s semiconductor devices and applications. Not only will we target next generation performance, but we will use new technology and methods to aggressively reduce costs in high volume products. Our industry is at a crossroads, and those who can innovate and scale will certainly build a sustained advantage. By joining with II-VI, we have the resources and capability to make this vision a reality.”

Ronald Chez, EpiWorks’ Chairman of the Board, stated “The Board of Directors is pleased to have overseen the growth of the company from a University of Illinois spin-off to an industry leader with sustained profitability, now moving into an aggressive scaling stage with our new partner, II-VI, a leader in advanced materials. We commend all of EpiWorks’ employees for their hard work and continued dedication.”